The below checklist includes essential considerations and steps to take for property owners and businesses that stand to be affected by hurricanes.
- Make an inventory of risk pathways that could affect your business.
- Identify essential supply chains, raw materials or parts providers and service providers to assess impact of potential disruptions.
- Stress-test what would happen if each supply chain were interrupted.
- Identify markets and customers whose disruption could affect your business.
- Identify potential sources of liability if your business was impacted by the hurricanes.
- Failure to meet contracted-for requirements
- Failure to take adequate measures to protect customers from harm
- Management failure to train employees to plan adequately for impacts, with concomitant claims by shareholders, regulatory authorities, customers, third parties
- Other?
- Identify other constituencies that might be affected by disruption to your business and risks associated with such disruption.
- Identify essential supply chains, raw materials or parts providers and service providers to assess impact of potential disruptions.
- Before any disruption occurs, identify and review insurance products that may respond.
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- First-party Property and Business Interruption insurance—for stoppage or slowdown of your own business, typically due to physical loss or damage to property
- Contingent Business Interruption (CBI) or Supply Chain Risk insurance—for disruption of supply chains and, potentially, markets
- Commercial General Liability (CGL) insurance—for liability to third parties arising from bodily injury or, potentially, personal injury or property damage
- Directors & Officers (D&O), Management Liability, Errors & Omissions (E&O), and Professional Liability insurance—for claims that management personnel failed to take appropriate measures to protect the business or third parties
- Event Cancellation insurance
- Travel insurance
- Workers’ Compensation insurance—adopt protocols and procedures to help employees make a record establishing work-relatedness in submitting claims
- Review business contracts to assess whether you are obligated to provide coverage to customers/clients, joint venture partners, contractors or others for risks outlined above.
- Review customer contracts to assess whether you are entitled to coverage provided by customers/clients, joint venture partners, contractors or others for risks outlined above.
- If so, request copies of relevant insurance policies (not just certificates of insurance) and review them to assess potential coverage.